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Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Supplies Budgeted Activity Patient
Optimal Health is an outpatient surgical clinic. The clinic's three activities, their overhead cost, and their cost drivers follow. Activity Supplies Budgeted Activity Patient services Building cost Budgeted Cost $ 2,865,000 33,000 368,000 Activity Cost Driver Surgical hours (SH) Number of patients Square feet Usage 15,000 500 3,200 The two main surgical units and their actual activity usage follow. Actual Activity Usage Surgical Service Hours General surgery 3,600 Orthopedic surgery 11,400 Required: Patients 400 100 Square Feet 800 2,400 1. Compute activity rates using activity-based costing. 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. 1. Compute activity rates using activity-based costing. Activity Supplies Patient services Building cost Budgeted Cost Budgeted Activity Usage Activity Rate 2. Allocate overhead cost to the general surgery and to the orthopedic surgery units. Compute overhead cost per patient for each surgery unit. General surgery -Activity Usage- -Activity rate- Allocated Cost Supplies Patient services
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